A company had the following purchases and sales during its first year of operations: On December 31,there were 26 units remaining in ending inventory.
-Using the periodic FIFO inventory costing method.What is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)
A)$3,405.
B)$3,270.
C)$3,200.
D)$3,364.
E)$5,400.

Question

A company had the following purchases and sales during its first year of operations:  On December 31,there were 26 units remaining in ending inventory.
-Using the periodic FIFO inventory costing method.What is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)
A)$3,405. 
B)$3,270. 
C)$3,200. 
D)$3,364. 
E)$5,400.

Quizplus · Accepted Answer

The periodic FIFO method calculates ending inventory based on the cost of the oldest inventory. The cost of the ending inventory is determined by the cost of the most recent purchases, which in this case totals $3,270.

A Company Had the Following Purchases and Sales During Its